Fixed Gift Trust
Our Fixed Gift Trust clearly defines the beneficiaries and their share at outset. The beneficiaries cannot be changed once the trust has been set up. As this is not a split trust, the life assured or settlor does not retain an interest in the policy. This means that they cannot receive benefits from a death, terminal illness or critical illness claim.
- Beneficiaries and their shares are clearly defined.
- Speed of payment.
- Benefits are paid free from Inheritance Tax (IHT).
Other information you need
Fixed Gift Trust may be suitable for clients:
- Who want to take advantage of the favourable potentially exempt transfer (PET) regime.
- Who want to make an outright, irretrievable gift and have no requirement for access to the gifted amount or any income generated, which would include, for example, any entitlement to benefit from any critical illness or terminal illness claim that may be payable under any policy.
- Who are willing to make an irrevocable decision now on who should benefit from the policy proceeds if a claim is made.
- Who want to avoid delays in distributing the proceeds of their policy benefit.
- If the only purpose of the policy is to provide funds for the chosen beneficiary(ies), for example, a disabled dependant.
- The policy proceeds will not form part of the settlor’s estate and will be free from IHT.
- The benefits are generally paid to the beneficiaries quickly, provided there is a surviving trustee, as the benefits are not included in the settlor’s estate and probate is avoided.
If you have decided that a Fixed Gift Trust (PDF) is suitable for your client please send us the completed and signed trust documentation as soon as possible. We cannot treat a benefit as being under trust until we have received the relevant documentation.
Our trust forms are editable PDFs. This means that you can complete them online and email to your client for them to print and sign.
Completed, signed and dated, trust forms can be sent to us either by email (a scanned copy or even send a photo) or by post.
Please remember to include the relevant plan number and ensure that the form has been signed and dated.
Scottish Widows Protect Servicing Team
15 Dalkeith Road
Trusts are documents with legal significance that may affect the rights, obligations and tax position of your client and the beneficiaries. You should not proceed unless you are satisfied that you understand its effect and that it achieves your objectives. If you have any doubts or uncertainties you should seek the appropriate legal guidance. Special consideration may be required where persons are either resident or domiciled outside the UK.